Major indicators of NOC KAZAKHOIL CJSC in 2000

/IRBIS, Feb 27, 01/ - Public relations department of NOC KAZAKHOIL CJSC (Astana) distributed a message where the company's results in 2000 were given. Based on this information, NOC KAZAKHOIL has increased its payments to the national budget more than twice. The company and its subsidiaries have paid KZT32.847 mln in taxes and other mandatory payments to the budget. It is by 227% more than the figure of the year 1999. Last year the company has increased its capital investment consumption rate 4 times (purchasing of equipment, drilling new wells, exploration, construction etc). For these purposes the company invested KZT26.5 bln. "Increase in payments to the national budget, growth of oil production and the beginning of the production facilities were due to effective management of NOC KAZAKHOIL and favorable prices", is said. NOC KAZAKHOIL also mentioned following achievements in 2000: - The company's bonds have been placed on domestic stock market. Increased demand of the commercial banks and the pension assets management companies caused the first issue volume to increase from $16 to $25 mln. - An agreement has been signed with the Japanese Marubeni Corporation on the reconstruction of Atyrau refinery, and the cost of the project was reduced from $412 to $308 mln. - NOC KAZAKHOIL received credit ratings of "B1" and "BB-" (at sovereign level) from leading agencies Moody's and Fitch, which allows the company to get into the world capital markets and take on international borrowings. - Became the first among Kazakhstani oil companies to decrease the risk of oil price fall by hedging 1 mln tons of oil. - The company expanded the presence of Kazakhstan on external oil markets by purchasing 60% of state block of Ukrainian Kherson oil refinery. In 2000 NOC KAZAKHOIL has placed KZT2.5 bln worth of orders with domestic companies under the program of Kazakhstani industry support and import substitution program, and took the third place among all companies. Last year the total of the contracts signed with domestic producers increased 1.5 times, at KZT3.78 bln. The enterprises, which are controlled by the company, produced 5.9 mln tons of oil last year (107.4% growth relative to previous year). The management of NOC KAZAKHOIL believes that the stabilization and increase in oil production was due to the focus on the implementation of the program for the year 2000, which means the work on the wells, drilling and renewal of existing capacities. Drilling of new wells increased 6.4 times in 2000 relative to 1999, and major overhaul increased by 132.6% during this time. Underground repair works reached 126.6%, and major overhaul of the pipelines increased 3.6 times. It should be mentioned also that in 2000 NOC KAZAKHOIL met its obligations on supplying domestic market with oil products with excess. Its companies have supplied 2.3 mln tons of oil (39% of annual production volume). Oil processing at Atyrau refinery reached 2.2 mln tons (16.3% growth relative to 1999). In order to create vertically integrated company, the company started building its own network of gasoline stations in 2000. Presently, 12 gas stations are almost finished in Aktobe, West Kazakhstan, Mangistau, Atyrau regions and in Astana. Besides, 11 natural gas stations and were being built in Mangistau regions. There are other figures on implementing the social programs in Atyrau and Mangistau regions by the company, which includes the housing construction, improving the working and living conditions of the oilmen. More than KZT4.5 bln was used for these purposes last year. With the joint efforts of the subsidiaries the employment problem is being solve in oil sector. By the results of Uzenmunaigas OJSC, it has provided job places for about 2 th. people, and city employment center quota was fulfilled 3 times. In Atyrau region Kazakhoil-Emba OJSC restored and created about 2,000 work places. As other oil companies, NOC KAZAKHOIL is engaged in charity. First of all, it is aimed at helping orphans, supporting talented youth and holding activities popularizing healthy life. For these purposes the company spent $2.6 mln in 2000.